Interactive storytelling, a narrative genre where audiences actively influence the plot, is experiencing a transformative shift due to advancements in generative AI technology. This evolution allows authors and content creators to craft more immersive, diverse, and engaging experiences across various platforms, including video games, films, and educational tools. AI tools enhance interactive storytelling by providing realistic character development, diverse storylines, and personalized user experiences through advanced analytics. They also streamline the content creation process, making it quicker and more efficient. This technological progress enriches storytelling by bridging the gap between creators and audiences, fostering empathy, and improving educational outcomes. As AI continues to progress, the future of interactive storytelling promises even more innovative and inclusive experiences.